Measuring the impact of leadership attributes on employee engagement through psychological empowerment: a study from the pharmaceutical industry

Managers are continuously worried about the engagement of employees in the organization. This research aimed to investigate the employees’ perceptions regarding leadership attributes, which enhance the workers’ psychological empowerment and engagement.

A sample of 296 employees from three pharmaceutical companies based in Karachi was selected. For hypothesis testing, IBM SPSS AMOS version 24 was used to perform a confirmatory factor analysis and structural equation modelling.

The outcomes of multiple regression analysis expressed that the attributes of a leader positively influence psychological empowerment and employee engagement. The study found that psychological empowerment partially mediates the relationship between leadership attributes (feedback and delegation) and employee retention. Furthermore, psychological empowerment has no mediation between leadership attributes (empathy) and employee retention.

This study offers a unique contribution by focusing on the relationship between leadership attributes (empathy, delegation and feedback) and employee engagement within the pharmaceutical industry in Karachi, a relatively underexplored context. Psychological empowerment as a partial mediator between leadership attributes and employee retention adds a novel perspective, particularly by revealing that it mediates the impact of delegation and feedback but not empathy. Moreover, this research provides actionable insights for policymakers and operational managers in industries beyond pharmaceuticals, making it valuable for enhancing employee engagement across sectors. Advanced statistical techniques like structural equation modelling and confirmatory factor analysis further reinforce the study’s methodological rigour.